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The Vancouver Bank Has Demand Deposits of $300,000 and the Target

Question 56

Multiple Choice

The Vancouver Bank has demand deposits of $300,000 and the target reserve ratio is 6 percent.If the bank's target reserves are equal to its excess reserves,then what must its actual reserves be?


A) 0.
B) $18,000.
C) $36,000.
D) $108,000.
E) That cannot be determined from the information.

Correct Answer:

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